As the financial year comes to an end, Newport-based lawyers Bellavia & Associates – who are debt recovery specialists – are urging businesses to chase their unpaid debts.
“The end of the fiscal year can be challenging enough for businesses without running the risk of outstanding invoices extending into the next year,” says Bellavia & Associates managing director and founder Zep Bellavia.
“The business environment is tough at the moment and many experts are predicting it will get worse before it gets better again.
“That is why the potential impact of late payments and unpaid invoices cannot be ignored. If it is, then it could prove damaging to many small businesses.”
Mr Bellavia said myths surrounding the cost of debt recovery put off many businesses from using legal avenues to pursue what is owed to them.
He said:
“All businesses are sustained by good cashflow and prompt payments. This is particularly the case for small businesses operating on tight margins.
“Many people think using a lawyer to recover debts is expensive. But nothing is more expensive than bad debt – and taking legal action quickly will reduce the chances of debt being written off.”
Mr Bellavia said that, despite businesses sometimes thinking debt recovery is costly and time-consuming, many of his firm’s clients end up not paying for their services as they recover over and above the original debt.
He said:
“Our specialist services such as freezing third party bank accounts are relatively inexpensive and provide a quick means of getting paid or at least of providing up to date information that can inform the debt recovery process. We love freezing third party payments to satisfy judgements and our clients love it too.
“I’d advise businesses wanting to improve their cashflow to pick up the phone and see how we can help.”
